Question

Identify the correct statement from the following :

(Choose the correct option)

• A. Human capital is tangible, whereas physical capital is intangible.
• B. Human capital formation and physical capital are the same.
• C. Human capital benefits not only the owner, but also society in general.
• D. Human capital, and physical capital, nature of depreciation remains the same.

Hint:

Human capital (skills, education, health) gives benefits to the person and to society. The other statements reverse or mix up the facts.

Answer 1

The Correct Option is C

Step 1: Understand the two kinds of capital:
Physical capital means machines, buildings and tools. Human capital means the skill, education and health that sit inside people.

Step 2: Check each option:
(A) Human capital is intangible (it cannot be touched) and physical capital is tangible. The statement reverses them, so it is wrong.
(B) They are different. Human capital formation builds skills in people. Physical capital is a stock of goods. So (B) is wrong.
(C) A trained person raises the output of society, and others also gain, for example through better health or knowledge sharing. So human capital benefits society and the owner. (C) is correct.
(D) Physical capital wears out through use, and human capital falls through age and not use. The depreciation differs, so (D) is wrong.

Final Answer:
Human capital benefits not only the owner but also society in general. Option (C).